While many companies are currently benefiting from better retention as employees play it safe, the challenge of keeping them truly engaged remains
Amid ongoing geopolitical uncertainties, workforce dynamics is undergoing a shift with fewer professionals switching jobs, choosing instead to stay with their current employers. This trend aligns with subdued hiring activity across major IT companies, as organisations adopt a cautious approach amid tightening client budgets and economic headwinds. Major tech companies such as Meta, Google, and Intel have either cut jobs or are also reportedly planning layoffs, further reinforcing the environment of caution.
Over the past few quarters, many employees have opted to stay with their current employers rather than explore new opportunities, according to analysts.
Recruitment funnels are also showing signs of stabilisation. According to Neelabh Shukla, Chief Business Officer at Careernet, India’s leading holistic talent solutions provider, tech roles in startups have seen a 10–30 per cent improvement in candidate retention during the hiring process.
Stability over ambition
In a further sign of caution, candidates are increasingly willing to accept smaller salary hikes and, in some cases, even salary cuts, as they prioritise job security over aggressive career moves, says Neeti Sharma, CEO, TeamLease Digital.
Neeti Sharma said, “They want job security and are worried about being the first to lose their job if a company needs to cut costs. Also, there just aren’t as many new job openings right now — especially in tech and startups. So, even if people want to move, there aren’t many options.”
Shukla notes that candidates who previously switched jobs primarily for higher compensation now have a more grounded view of market realities. As a result, that segment has shrunk, which he sees as a positive development for the overall ecosystem.
Workforce stickiness deepens across sector
Job stickiness is particularly evident in sectors like manufacturing, especially in smaller cities. Traditional manufacturing roles tend to offer more stability, whereas newer segments like electric vehicles and electronics continue to see movement as companies compete for skilled talent. Meanwhile, in IT, job switching remains relatively active, with attrition rates hovering around 12–14 per cent, even though the sector is expected to grow by 10–12 per cent in 2025. Sharma points out that many tech professionals are reluctant to return to traditional IT services roles, as evolving technologies and changing skill requirements continue to fuel churn.
In the banking and financial services (BFSI) sector, however, employees are staying longer. While companies are offering competitive benefits to retain talent, employees still leave for better pay packages or faster career growth.
The desire for security is also reflected in broader workforce trends. An ‘Indeed’ survey found that 31 per cent of Indian employees plan to look for a new role this year, primarily in search of greater stability. Meanwhile, 41 per cent have already taken upside gigs, not just to earn more, but to create a safety net. With 78 per cent saying they’d prioritise family time over career progression, said Sashi Kumar, Head of Sales, Indeed India.
While many companies are currently benefiting from better retention as employees play it safe, the challenge of keeping them truly engaged remains. Organisations are stepping up efforts by offering growth opportunities, upskilling programmes, and clearer career progression pathways. However, Sharma cautions that some employees are staying not out of genuine satisfaction, but because they feel they have limited options, making employee motivation an ongoing challenge for businesses.
Published on April 28, 2025